How does order fulfillment and billing work in Shopify?

Hello Fellow Shopkeepers!
I am fairly new to Shopify and I guess I am not quite clear on how fulfillment works…
I recently had two orders placed in my store, both Sublimator products. At the time the orders were placed, the cost price of the items were deducted from my PayPal account. So presumably when I AM paid (21 days later??), I am paid the total sale price (before any local sales tax/VAT) +profit? It seems to make sense and I don’t have issue with it. Just looking to confirm. Related, I could see how this could be a risky thing to a seller, especially concerning large and/or bulk orders. Not all sellers have a few hundred (or thousand) dollars laying around in their PayPal (or other approved) account. Am I misunderstanding this?

Sorry for the N00b question. Please feel free to direct me to a thread or FAQ that surely already answers such questions. Thanks!
Ed

Hi, @mindthemod

Thanks for posting to the community. I hope you’re well!

The time and way in which you get paid for the orders placed on your Shopify store will depend on the gateway you use to process payments, as well as how the customer paid.

For example, if you use Shopify Payments, you will be paid out to your bank account every 1-3 business days depending on your preferred settings. You can check your payment gateway by heading to Settings > Payments. However, if the customer paid via PayPal you will be paid to your PayPal account.

Dropshipping, however, is a bit different. As you need to purchase the product as well, two transactions take place. The first transaction is your customer paying you, and the second in which are you paying the supplier. The payments that came from your PayPal sound like you are paying the supplier in Sublimator.

To know when and how you will be paid you will need to check the payment method used in your store. You can find this by opening the order in your Shopify Admin under Orders. Then, scroll to the order timeline and you will see how the customer paid.

In the meantime, as you’re new to the platform, I’d love to take a look at your store to see what additional feedback I can provide. Also, check out our guide on the top 10 free ways to advertise your new business!